Benteler to open a new factory near Vigo

It plans to invest €20-30 million, and will create more than 200 jobs

Benteler Automotive, the automotive division of the German group, has chosen the town of Mos near Vigo (province of Pontevedra) as the site for its second factory in the zone. The information comes from the Galician media, which locate the new plant in the industrial park of A Veigadaña.

According to these media, the company has been negotiating from some months with a number of authorities, such as the Regional Government of Galicia and numerous local councils in Galicia and Portugal. One of the reasons for choosing Mos is that it is close to two factories: the company's other plant in Vigo, on which the new facility will depend; and in particular, that of the PSA group, also in Vigo.

The German group is to invest around €20-30 million in the new plant, leading to the creation of between 200 and 250 new jobs. Construction on the 25,000 square meter lot, which appears to have already been purchased, is expected to be complete by the end of this year, and it should begin operating in the first quarter of 2019. The plant will be highly automated and equipped with the latest technology, its main customer being the PSA group.

Increased competitiveness
The Galician media report that the Regional Government of Galicia has directly related the choice of Mos to its policy of offering tax incentives. These would have outweighed considerations of lower production costs offered by the alternatives on the other side of the border.

A number of business associations have valued positively the fact that Benteler has chosen Galician competitiveness over the tough competition from sites in the north of Portugal.